Pasta kings behind Adelaide CBD tower purchase
The Crotti family, behind the San Remo pasta brand, has bought one of the biggest office towers in Adelaide’s CBD for about $86.5 million, topping the asking price as investors show confidence in the city’s office market.
The 12-level building at 108 North Terrace was brought to the market by Dexus Property Group and its heavyweight partner, the Canada Pension Plan Investment Board, in April and expected to fetch at least $85 million.
Dexus and its Canadian partner picked up the tower as part of the 2014 takeover of the Commonwealth Property Office Fund.
The deal underscores the growing interest and confidence in Adelaide’s office market, with several top developers undertaking projects and returns seen as good value in comparison with Sydney and Melbourne.
The Crotti family is well known for its San Remo pasta brand, which enjoys a market share of more than 50% in Australia. Founded in 1936, the small pasta maker has grown into an international company, selling goods throughout Australia, New Zealand, Asia, the Middle East and Europe.
Both Dexus and the Crotti family declined to comment on the transaction. But it will add to the Crotti holdings, with one member of the family believed to be behind the $63.5 million purchase of 30 Flinders St earlier this year.
Located at the heart of Adelaide’s CBD, the building has a net lettable area of 20,088sqm, with high-profile tenants including Hewlett Packard, Optus and the South Australian government.
It sits on a 2307sqm corner site, fronting both North Terrace and Victoria streets. The building also offers 127 carparks in the basement and the adjoining sub-ground car park.
The A-grade office tower was completed in 1999 and was refurbished in 2014, with improvements to its energy efficiency performance.
The agents on the sale were Colliers International’s Ian Thomas, Paul Van Reesema, James Barber and Emily Fan.
This article originally appeared on www.theaustralian.com.au/property.